New Lifetime High Reached By PTC (PMTC)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified PTC ( PMTC) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified PTC as such a stock due to the following factors:

  • PMTC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.5 million.
  • PMTC has traded 664,217 shares today.
  • PMTC is trading at a new lifetime high.

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More details on PMTC:

PTC Inc. develops, markets, and supports software solutions that facilitate companies to design products, manage product information, and enhance their product development processes worldwide. PMTC has a PE ratio of 1398.5. Currently there are 3 analysts that rate PTC a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for PTC has been 590,000 shares per day over the past 30 days. PTC has a market cap of $3.3 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 2.27 and a short float of 2.1% with 3.97 days to cover. Shares are up 24.3% year to date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates PTC as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 50.5% when compared to the same quarter one year prior, rising from $22.90 million to $34.46 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.8%. Since the same quarter one year prior, revenues slightly increased by 1.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has increased to $84.59 million or 32.15% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -4.15%.
  • The gross profit margin for PTC INC is currently very high, coming in at 74.92%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, PMTC's net profit margin of 10.91% significantly trails the industry average.
  • Powered by its strong earnings growth of 52.63% and other important driving factors, this stock has surged by 37.56% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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